The revenue principle determines when to record revenue and the amount of revenue to record.

Question

Quizplus · Accepted Answer

The revenue principle is a fundamental accounting principle that guides when and how revenue should be recognized in financial statements. It provides guidance on when to recognize revenue and how much revenue to recognize, based on the transaction or event that generated the revenue. Therefore, the statement that the revenue principle determines when to record revenue and the amount of revenue to record is true.

The Revenue Principle Determines When to Record Revenue and the Amount